740.00112 European War 1939/395: Telegram
The Ambassador in Belgium (Davies) to the Secretary of State
[Received October 28—7:55 a.m.]
163. My 137, September 18, 6 p.m. Conversations in London relating to British contraband control were initiated some weeks ago between [Page 766] representatives of Belgian and British Governments and are still in progress. Negotiations are being conducted on the basis of reaching an agreement on the amount of each specific article of commerce which Belgium would be allowed to import for the purpose of domestic consumption or for manufacture and export. Foreign Office informs me that these fall within three categories: (1) Articles the export of which from Belgium is forbidden such as wheat and gasoline. No difficulty is being encountered with respect to these. (2) Other articles and raw materials imported for manufacture and export. The Belgians are insisting that if they should be compelled by Great Britain to abolish or limit their exports of such merchandise to Germany they would, in order to preserve a policy of complete neutrality, accord the same treatment to the other belligerents. It is believed that British need for certain classes of Belgian manufactures will oblige them to concede to Belgium the right to export similar quantities of such commodities to Germany. (3) Goods in transit. These are presenting considerable difficulty as important amounts have been imported in bond to order and subsequently sold to Germany. The conclusion of war trade agreements between Great Britain and other European neutrals would prove helpful. It was acknowledged, however, that the transit trade of Antwerp will certainly suffer.
Although these negotiations are making progress no information was given as to the date of their conclusion.
It is probable that the Belgian attitude towards British claims has been stiffened by intimations from Germany that British pressure on the neutrals endangers the latter’s neutrality and that Germany would not accept passively the increase of the neutrals’ trade with Great Britain. That such an increase would compensate the decrease in neutrals’ trade with Germany occasioned by the blockade was indicated by the British Minister of Economic Warfare in an interview given on October 22 to a representative of the Independance Belge.